Integrated Annual Report 2020

Integrated Annual Report 2020

Towards a Sustainable Future

Our report preparation

This 2020 IR covers the period 01 January 2020 to 31 December 2020 and endeavours to present a holistic and comprehensive account to all investor and other stakeholder groups, on progress achieved that is related to economic, environmental, and social elements. It provides information on Wesizwe’s strategy, corporate governance that targets ethical culture, excellent performance, and effective control. The report covers Wesizwe Platinum Limited and all of its subsidiaries as shown structurally on page 17, and should be read with the Annual Financial Statements (AFS), accessible on our website www.wesizwe.co.za.

Critical to the 2020 IR is the intent to provide an overview and relevance of sustainability in the overall development strategy of the Company, with a specific focus on the full and balanced status of material aspects, and their relative impact and how those are managed.

This approach is further enhanced by general guidance from South African mining industry approaches, adapted from industry advisory notes issued periodically by the Minerals Council of South Africa to the Company as an affiliate in good standing.

Directors’ statement of accountability The Board of Directors acknowledges its responsibility to ensure the integrity of the Integrated Annual Report for the 2020 financial year. The Board has accordingly applied its collective mind and, in its opinion, this report addresses all material matters, and offers a balanced view of the performance of the organisation and its impact on the environment and society. On the recommendation of the Audit and Risk Committee and the Social and Ethics Committee, the Board of Directors approved the 2020 Integrated Annual Report on 18 March 2021.

Wesizwe Platinum Limited (the Company or Wesizwe) proudly presents its 2020 Integrated Annual Report (2020 IR), the eighth edition since commencing with the integrated reporting format. Wesizwe is creating a sustainable mining entity for its current and future shareholders.

2INTEGRATED ANNUAL REPORT 2020

Dawn Mokhobo • Chairperson Zhimin Li • Chief Executive Officer

3 INTEGRATED ANNUAL REPORT 2020

INTRODUCTION

AssuranceAn external assurance process has been utilised for a moderate assurance, prepared in accordance with the defined reporting criteria and free of material misstatements in respect of:• the Company adherence

to the AA 1000APS principles of inclusivity, materiality and responsiveness; and

• the selected Key Performance Indicators (KPIs) as listed under assurance objectives.

The assurance engagement was performed by a registered audit firm with the Independent Regulatory Board for Auditors (IRBA) and therefore justifies the use of ISAE 3000 as the assurance standard for non-financial information.

INTRODUCTION

Our report preparation 2Directors’ statement of accountability 2Frameworks applied 3Assurance 3Corporate profile and history 4Our business 4Managing Covid-19 6What we do – our ore body 9Strategic and material issues 10Our performance highlights 12

WESIZWE IN CONTEXT

Vision and values 16Group structure 17Our operating environment 18

Operating context and market 18Our approach to sustainability 20Risk management 21Compliance management 24Ethics and business conduct 26

OUR LEADERSHIP

Chairperson’s overview 28Chief Executive Officer’s review 30Our leadership 32

OUR PERFORMANCE

Financial capital 36Built (Manufactured) capital 40Natural capital 49Social and Relationship capital 54Human capital 63Intellectual capital 75Corporate governance report 75

ABRIDGED ANNUAL FINANCIAL STATEMENTS

Abridged consolidated statement offinancial position 90Abridged consolidated statement of profit or lossand other comprehensive income 91Abridged consolidated statement of changes in equity 92Abridged consolidated statement of cash flows 93Notes to the abridged consolidated financialstatements 94Shareholders information

Shareholder register analysis 100Notice of the Annual General Meeting 102Form of proxy 111

ANNEXURES TO THE REPORT

Sustainability Limited Assurance Report 114GRI G4 content index 117Abbreviations and acronyms 122Administration ibc

Contents

The 2020 IR complies with the provisions of the South African Companies Act 71 of 2008 (Companies Act), the Johannesburg Stock Exchange (JSE) Listing Requirements, and the King IV Principles, all of which embody the Company’s aspirations towards good corporate governance.

The Group AFS were prepared in accordance with International Financial Reporting Standards (IFRS). This report is guided by the Global Reporting Initiative (GRI) Standards as issued by the Global Sustainability Standards Board (GSSB), accessible from www.globalreporting.org/standards.

Frameworks applied

36 Financial Capital

40 Built (Manufactured) Capital

49 Natural Capital

54 Social and Relationship Capital

63 Human Capital

75 Intellectual Capital

The Integrated Annual Report is available on: www.wesizwe.co.za

HOW TO NAVIGATE THIS REPORT

To facilitate reading and navigating the report, we have incorporated the following symbols:

CORPORATE PROFILEWesizwe is a public company incorporated in the Republic of South Africa with its shares listed on the JSE.

Our intention is to enter into Platinum Group Metals (PGM) mining in South Africa as the launch pad for growing into a significant multi-commodity mining company that sets new benchmarks for sustainable mining practices.

The development of our new Bakubung Platinum Mine (BPM) has the sole purpose to access one of the last remaining sizeable and viable Merensky and Upper Group 2 (UG2) Chromitite layer PGM ore bodies.

OUR BUSINESSThe base design parameters of the mine includes mine access through a twin vertical shaft system, comprised of a 7.5 m diameter Main shaft for personnel transport and material logistics, and 6.5 m diameter Ventilation and Services shaft. The mine will also sink 6 m diameter raisebore holes (1, 2 and 3) to 72L for added ventilation. The Main shaft is intended to have a hoisting capacity of 255 000 tpm of ore and 15 000 tpm of waste per month.

After a series of business reviews by the Company in response to the prevailing market and low pricing fundamentals, the Board resolved to revise the current mine plan resulting in the development of a 1 million tonnes per annum (mtpa) mine with an equivalent 1 mtpa processing plant (MF2) to treat the ore. The 1 mtpa capacity mine will be operated for a period of five years, from 2021 until 2026, after which it will be scaled-up to the base case 3 mtpa operation. After the Merensky Reef is depleted, the full 255 000 tpm will comprise UG2 ore only.

The Merensky Reef and the UG2 ore will be mined through semi-mechanised or hybrid methods using conventional methods on the face and mechanised ore-handling and development.

HISTORICAL HIGHLIGHTS

Who we are

OUR STORY

OUR BUSINESS IS MAINLY FOCUSED ON:

2011 – 2015

2003 – 2010

• Transaction with China Africa Jinchuan Investments Limited is concluded, with US$227-million injected into the Group

• Wesizwe’s core project is relaunched as the Bakubung Platinum Mine (BPM)

• Shaft sinking contract awarded• First blast of the Ventilation shaft• Main shaft pre-sink starts • Main shaft slow sink begins – 345 m achieved by end December 2013• Ventilation shaft headgear commissioned• Ventilation shaft slow sink begins – 506 metres achieved by end December 2013• US$650-million facility entered into with the China Development Bank (CDB) • 69 Level and 72 Level stations’ development in the Ventilation shaft• Intersected Merensky Reef• Commenced the bulk sampling programme by collecting 300 tonnes of reef samples

from both shafts• Commenced the permanent water supply phase 1c infrastructure development• Commenced the phase 2 power supply programme with Eskom and signed agreements

with guarantees paid• Process plant feasibility study review concluded• Project optimisation plan finalised and approved by the Board

• Both shafts reached bottom; commencing with Main shaft equipping• Commissioned 1.5-million litres per day capacity as part of permanent water supply to

BPM• Commenced waste development on multi-level through the Ventilation shaft• Implemented the mine operational readiness plan• Commenced with the process plant enquiry for the EPCM and front-end engineering (FEE)• The two shafts were connected on 72 Level with ore loading box excavation completed

• A feasibility study shows PGM resources over 350 koz pa, over a 30-year life of mine• Completed a bankable feasibility study

• A term sheet with a Chinese consortium is signed


INTRODUCTION

1. The successful development of BPM for the shareholders' benefit. 2. Ensuring value-add for our host communities.

2016 – 2019

• Shaft equipping progressed as scheduled• Achieved zero fatalities• Bulk services for a 50 ml water reservoir completed jointly with PTM Mine• Bakubung electrical substation commissioned• Extensive capital deferment on non-critical packages completed

• Continued with annual zero fatality record since the last incident in April 2015• Completed Main shaft equipping• Completed connections between Service shaft and Main shaft on all levels• Commenced work on the permanent waste pass• Completed connection between 77 Level and 81 Level

• Continued with annual zero fatality record since the last incident in April 2015• Appointed the Capital Footprint Developer• Main shaft licenced to transport personnel, material and rock• Rock hoisting through Main shaft commenced• Loading facility automation completed• Completed 161-CV-001 surface conveyor from Main shaft headgear bin to transfer bin

• Successful negotiation of a three-year wage agreement with the labour union• Revision of the new operating structure that supports the new business model (Survival Plan)• Development and completion of Employee Workflow process in the Human Resources Information System• Completed meaningful stakeholder consultations for the 2019 – 2023 SLP and submitted to the DMRE• Negotiated new Social Housing Regulatory Agency grants terms and conditions for the development of 801

units from 2020 – 2023• Maintained a harmonious relationship with all stakeholders• Continued with annual zero fatality record since the last incident in April 2015• Completed and undertook cold-commissioning of the installation of substation 69 and 72 Levels• Appointment of the EPC and building contractors for the construction of the Process Plant• Achieved 5 760 m development against a target of 6 166 m, representing 92% delivery against target• Intersected Merensky Reef on 69 Level• Underground blasting achieved 109 966 m3 against a target of 104 032 m3 representing a 106º% performance



Managing Covid-19

The mining industry in South Africa has, apart from its economic woes, suffered significant further strain with the advent of the coronavirus. The country’s dependence on mining exports and the nature of mining procedures, meant that production could not be stopped, putting at risk the high numbers of employees that work in the sector. The introduction of measures, in line with compliance to new Covid-19 regulations, required the sector to ramp up its existing health and safety protocols, and hopefully prevent a potential significant spread.

MINE EMPLOYEE EDUCATIONFisha Wellness Hospital (Py) Ltd (Fisha), the service provider we appointed in April, led the employees information and advocacy program about Covid-19 and its isolation and quarantine protocols. An isolation facility was also secured to ensure we could isolate any employee who showed symptoms or tested positive.

These efforts became part of the BPM’s daily routine as new employees had to ensure they went through the new Covid-19 induction programme. The education methods also included awareness of how to protect individuals and their families outside of the mine, and further extended into our local communities, contractors, visitors and other stakeholders.

SAFETY WHILE WORKINGWe ensured that the spread of the virus was curtailed and did not manifest within the mine. The goal was to ensure that we abide by our policy that people come first, regardless of whether they work for Wesizwe or not. Thus all World Health Organisation (WHO) recommendations were also applied, which along with the Court of Protection (COP) applications, meant Wesizwe had taken the most extreme of measures to help mitigate any spread of coronavirus.

Professional nursing staffMs Audrey Kgokong - Our Site Secretary


INTRODUCTION

MEASURES IN PLAYOne of the first measures was to discontinue the use of a breathalyser, which is used for alcohol testing, and disabling of the biometric fingerprint on the clocking system. We introduced the mandatory wearing of masks at all times, and similarly undertook daily Covid-19 health screenings at the mine entrance. Sanitisation dispensers were installed in strategic areas throughout the BPM, and Covid-19 signage about protocols and mandatory safety procedures were erected on routes to the main mine entrance. Additional to the initial mass testing done in April/May 2020, we conducted a second mass testing in November 2020 due to the increase in Covid-19 positive cases within the workplace and in South Africa generally.

We also introduced daily deep cleaning of as many working environments as possible, inclusive of transportation vehicles. The office environment was cleaned and sanitised regularly, including fogging to eliminate cross-contamination among employees.

Employees were instructed to no longer share lunch and encouraged to eat apart from their colleagues.

Ongoing training and coaching, regardless of the number of times an employee has attended such, is necessary especially given the government updates and the impacts of a second, and potential third, wave. The BPM thus undertook a third mass testing in January, some 1610 employees, to ensure those returning from the annual Christmas break, were negative for the coronavirus. Only 65 tested positive and were put into isolation.

No expense was spared to ensure complete compliance with the applicable regulatory prescripts as issued by the DMRE and the Ministries of Health and Cooperative Governance and Traditional Affairs (COGTA). The multi-pronged approach taken by the Company to manage Covid-19 has introduced several new initiatives to our safety and health procedures. One such is the effective collaboration of partnerships between external services and internal structures, as indicated in the diagram on page 8.

BPM Covid-19 Committee


Managing Covid-19 (continued)

CONCLUSIONWe believe that the manner in which the BPM managed the spread of Covid-19 was effective and proved the value of good leadership in the face of an unprecedented crisis. As a result we are pleased to report that no Covid-19 related deaths were experienced at the BPM. The enforcement of strict measures was guided by the external provider, which improved consistency and compliance, but was supported by management. We did not attempt to manage our way, but remained highly consultative. No stone was left unturned in our efforts to protect every individual entering the mining premises, including ensuring PPE use and security checks from entering the gate to exiting the property.

Our employees were extremely receptive to their induction and clearly applied the proper protocols both in their homes and at work. Myths and stigmas associated to Covid-19 contraction were quickly dispelled because our actions were comprehensive and informative.

This is a success story; that despite the dire situation or deadly pandemic we faced, we all came together quickly and efficiently to fight, prevent and protect one another. Our people are truly the strength of Wesizwe.

Bakubung Platinum Mine winning strategy to keep Covid-19 away from the Mine

External service provider to manage

Covid-19 programme

Outsourced 24-hour helpline for all employees

Established Primary Health Care Clinic manned by professional nurses

Enhanced Covid-19 visibility and awareness around the mine

PCR testing of suspicious cases

Strict compliance with Covid-19 protocols within the Mine

Appointment of Covid-19

Compliance Committee

Appointment of Covid-19

Compliance Officer

24-hour strict gate screening by professional

nurses

24-hour emergency

ambulance for Covid-19 cases

24/7 dedicated nurse-based Isolation and

quarantine facilities

Top-Level

BPM

Executive involvement

DMRE


INTRODUCTION

What we doOur ore body

The mine site is adjacent to the western boundary of the Royal Bafokeng Platinum Limited’s Styldrift project, which is north of Maseve Investments 11 (Pty) Limited’s Project 1.

This is a high-quality, flat-lying resource ore base, which comprises two reefs, the Merensky and UG2. The ore body is favourable for conventional mining, given its large width, however mechanisation will be used for development and parts of the ore body that have even higher mining widths.

A combination of conventional and mechanised mining is planned in an effort to achieve a relatively high extraction ratio of 74%, from the flat dipping ore-body that requires four underground levels with a declining steeper access for parts below 81 Level. The prill split is highly favourable at 62.4% Pt, which is considered a good ratio for PGM mines.

The Merensky and UG2 will be mined in a split ratio of 9:1 respectively until Merensky is depleted, at which time it will swing completely over to UG2.

On the western limb of the Bushveld Igneous Complex, north of the city of Rustenburg in the North West Province, is the Bakubung Platinum Mine


What we do Strategic and material issues

PEOPLE

SAFETY

FUNDING

SOCIAL COHESION

BPM DEVELOPMENT COMPLETION

PROCESS PLANT CONSTRUCTION

UNION RELATIONS

COMPLIANCE

We continue to ascribe to the norms and standards that recognise the value of our people, respect and protect the fundamental rights of employees as accorded by and as guided by the conventions of the over 100-year-old International Labor Organisation (ILO).

We remain focused on ensuring that the development phase of the project is completed in 2021 and production commences during the third quarterof 2021.

Safety remains one of our top priorities and is monitored by our Social & Ethics Committee

The CDB loan amounting to US$650-million has been completely drawn down. One of the key strategic focus areas is to secure additional funding that will ensure productivity and increased value for our shareholders.

We continue to promote our values and strive to inculcate a value-driven culture within the Company.

The Company will only survive if it continues to maintain excellent relations with its stakeholders, inclusive of meaningful consultations and transparency.Significant progress has been achieved in this area, although there remains room for improvement.

The process plant construction remains top of our agenda, we are continuing with construction of a 1 mtpa processing plant (MF2) to treat the ore, with the target of completing construction before December 2021.

The three-year wage agreement is in its final year and has provided a solid platform for a stable operational environment and has illustrated how seriously the Company values its relationships with employees and the unions.

The Company continues to enjoy a fairly stable industrial relations climate with no stoppages experienced during the reporting year.

Our obligations related to the mining right granted in terms of Section 23 of the Minerals and Petroleum Resources Development Act (MPRDA), No 28 of 2002, have been fully discharged.

We have also taken into account our obligations arising from the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals industry (Mining Charter) released by the Department of Mineral Resources and Energy (DMRE) in September 2018.

We endeavour to ensure that our transformation strategy is aligned to the implementation guidelines of the Mining Charter as issued by the DMRE in December 2018.

We currently hold a level 5 B-BBEE certification.

COMPANY VALUES


The Company has accepted the International Integrated Reporting Council’s (IIRC) ‘six capitals’ model as best practice for logical and transparent reporting on our operational, financial and broader activities. In our view, the King IV Code and Recommended Principles (King IV Code), recommended six capitals reporting stance, enables a clear view of the tangible – financial, manufactured, human and natural – and intangible – intellectual, social, and relationship – capitals that flow through the Group to create short-, medium- and long-term value.

Social and Relationship capital includes:• shared norms, values and behaviours

with key stakeholders;• meaningful engagements with external

stakeholders;• intangibles associated with the brand

and reputation;• the Company’s social licence to

operate;• government, service providers, funders,

and communities; and• a workforce development and

community relations strategy that encourages harmonious relationships with these vital stakeholders.

SO

CIA

L A

ND

RE

LATI

ON

SHIP

CA

PITA

L

Manufactured physical objects (as distinguished from natural physical objects) used in producing goods or providing services. These may be: • buildings;• equipment;• infrastructure (such as roads, waste

and water treatment plants);• emphasis on capex and opex

optimisation;• infrastructure, logistics and IT systems

being developed at the BPM and Wesizwe House to reduce costs;

• utilisation of partnerships and global procurement opportunities; and

• fit-for-purpose designs.

BUIL

T C

API

TAL

Individual competencies, capabilities and experience, and their motivations to innovate, including: • alignment with the Company’s governance

framework, risk management approach, and ethical values;

• ability to understand, develop and implement the Company’s strategy;

• loyalties and motivations for improving processes, goods and services, and ability to lead, manage and collaborate; and

• tacit and implicit capabilities as individual employee and collective capacities. This may entail knowledge, skills, experience, wisdom, and talent, and enabling the Company to deliver on its targets.

HU

MA

N C

API

TAL

All renewable and non-renewable environmental resources and processes that provide goods or services, inclusive of air, water, land, minerals and forests, and biodiversity and eco-system health. Our natural capital encompasses our geological setting and our much-valued mineral resources. We further report on the environmental aspects of:• water and electricity usage – carbon

footprint;• our monitoring programme inclusive

of parameters related to dust fallout, PM10 (respirable dust), NO2, SO2, surface water and groundwater;

• major environmental incidents; and• fines for environmental transgressions or

non-compliance.

N

ATU

RAL

CA

PITA

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Organisational, knowledge-based intangibles, including: • intellectual property, such as patents,

copyrights, software, rights and licences;

• ‘organisational capital’ such as tacit knowledge, systems, procedures and protocols;

• brand equity, product development, market research, management expertise, efficient supply chain, and sound corporate governance; and

• local mining experience in conjunction with expertise offered by Chinese shareholders and executives.

IN

TELL

ECTU

AL

CA

PITA

L

The pool of funds that: • is available to an organisation for

producing goods or providing services;• are obtained through financing (such

as debt, equity or grants), or generated through operations or investments;

• offer equity and raising development capital at competitive rates;

• provide efficient expenditure of development capital; and

• build shareholder value.

FI

NA

NC

IAL

CA

PITA

LINTRODUCTION


INTRODUCTION

Performance highlights

• Implemented a comprehensive Covid-19 management strategy as summarised on pages 6 to 8.

SAFETY

• Continued with our skills development programmes, with a key focus on internships, apprenticeships and bursaries.

• Undertook a company-wide core and critical skills audit.

HUMAN RESOURCES MANAGEMENT

• Achieved 3 791 development metres, against a revised target of 3 654m.• Commenced with earthworks for the process plant and delivery of long-lead items.• Commissioned the PRS and Substations on Levels 69 and 72.• Hoisted some 86 446 tonnes of ore from Merensky, to surface stockpile; and a total 171 796 tonnes,

including waste. • The operating costs per metre, cube and per ton for the year to date is: 8%, 20% and 13% above revised

2020 budget at R228 651 p/m, R14 404 p/m3 and R4 560/tonne.• Completed the BPM Definitive Feasibility Study update and related Competent Persons Report, as

required by the JSE.• Began testing and commissioning of 30 tonne Dump Trucks on Level 69 for underground long-distance

haulage.

DEVELOPMENT AND EQUIPPING

• Maintained cordial relations with our stakeholders• Maintained zero sanctions for environmental compliance.• Continued with the implementation of the Social and Labour Plan (SLP) programmes.

STAKEHOLDER RELATIONS

WESIZWE IN CONTEXT

Vision and values 16

Group structure 17

Our operating environment

Operating context and market 18

Our approach to sustainability 20

Risk management 21

Compliance management 24

Ethics and business conduct 26

WESIZWE IN CONTEXT



Vision and values

Our vision

is to grow

into a significant

multi-commodity

mining company,

focused on

strategic metals

with sound

fundamentals

for sustainable

demand.

Trust, openness and transparency

Ownership, accountability and responsibility

Perseverance and tenacity

Zero harm to people and the environment


WESIZWE IN CONTEXT

Group Structure

BEE, Micawber, Anglo American Platinum,

Institutional and othershareholders 55%

China Africa Jinchuan Investments Limited 45%

Bakubung Minerals(Pty) Ltd

100%

Gabonewe HousingEstate (Pty) Ltd

Wesizwe Properties(Pty) Ltd

Africa Wide Mineral Prospecting and

Exploration (Pty) Ltd

100% 100% 100% 100%

Vaviscan (Pty) Ltd

Respecting diversity and inclusion

Ethical behaviour based on integrity and honesty

CaringDignity, respect and fairness


PGM MARKET UPDATEDuring a period overwhelmed with the uncertainties of Covid-19, Platinum Group Metals (PGM) fundamentals improved further over the past 12 months. The deficits in palladium and rhodium markets intensified resulting in record prices achieved for both commodities, while PGM producers received super-cycle like margins. PGM metal shortages appear unwavering in the next five years despite potential market headwinds discussed below. A shortage of investment over the past decade resulted in a muted supply side response amid PGM shortages, despite rising PGM market deficits in 2020.

The PGM supply side was materially impacted by mine closures in the second quarter of 2020. Thereafter, the South African PGM companies management teams commendably undertook a cautious approach to ramp-up mines in the wake of Covid-19, which resulted in the industry reaching above 90% operating capacity by the fourth quarter of 2020. The factors mentioned above, together with Anglo American Platinum’s ACP shutdown, intensified the shortfall of metal, most notably rhodium which soared to above $20 000/oz.

Global PGM production reduced by c.17% during 2020 due to mine stoppages, however PGM metal demand from auto-catalysts reduced by just 14%, intensifying the deficit PGM market balances. The momentum of higher PGM loadings appears likely to continue as emissions targets are further tightened in the coming years. Over the next 24 months China will further tighten emission regulations (China 6a) on heavy duty vehicles while China 6b Real Driving Emissions (RDE) will be implemented, both leading to higher loadings of PGMs. The insatiable demand for rhodium and price differential between platinum and palladium may once again promote thrifting of PGMs in larger light duty vehicles. The substitution of palladium for platinum will likely occur in a more measured approach than the robust thrifting witnessed more than a decade ago when platinum prices reached a record $2 000/oz. However, this will be positive for the South African PGM producers.

Auto production rebounded well in the second half of 2020. China reported auto production just 4% lower in 2020 versus global automotive production down nearly 14% during a year impacted by periods of extended retail lockdowns. Early indications in 2021 signal a measured rebound in

Our operating environmentOperating context and market

The PGM supply side was materially impacted by mine closures in the second quarter of 2020.

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2019 2020

BrazilEast EuropeWest EuropeJapanUSAChinaWorld

Source: All figures supplied by Bloomberg, Feese Consulting

Figure 2: Global light duty sales

WESIZWE IN CONTEXT

auto-sales, partly due to a shortage of automotive chip supply. However, a tailwind from consumers higher savings rate through the pandemic and almost non-existent travel spend may provide a catalyst for luxury car sales.

Electric Vehicles (EVs) and Plugin Hybrid Electric Vehicles (PHEVs) will continue to gather strong momentum as the world moves towards a cleaner environment, albeit off a low base. The ‘green’ strategy, which includes the rollout of PGM containing PHEVs over the next decade will reduce the negative impact from pure non-PGM EVs. However, during this transition the hydrogen economy will also be a cog in the wheel for a cleaner future. Hydrogen fuel cell automobiles, busses, trucks and heavy-duty equipment have proven to be reliable with commercial viability improving. The hydrogen economy is likely to be a vital demand source for PGMs in future.

PGM market fundamentals appear likely to remain healthy over the medium term. A limited supply side response, tighter emissions legislation and penalties for non-compliance creates an environment of sustained PGM market deficits ahead. Substitution of palladium for platinum will draw down large stocks of above ground platinum inventory, potentially creating pricing momentum similar to that witnessed in palladium. Due to the inflated


Combustion engines BEV

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Figure 3: Global light duty sales

Figure 4: Platinum market balance Figure 6: Rhodium market balance

Figure 5: Palladium market balance

rhodium price and no near-term solution for rhodium shortages, a move to substitute rhodium with palladium will likely be considered by auto-catalyst producers. The factors mentioned depict a fundamentally healthy PGM market in the medium term which is likely to be beneficial for PGM producer margins.


Our operating environment (continued)

Our approach to sustainability

Deliver on Wesizwe’s SLP commitments, ensuring that the social licence to operate and mine in the area is retained. Part of that commitment is to address the social and labour impacts of mining in a manner that fully involves communities, while also communicating that mining has to be cost-effective for the shareholders.

Fully deliver on the strategy by ensuring that sustainable principles and practices are embedded into all aspects of business. These are governed and assured to keep the Company on its sustainable development track.

Further build upon sustainable development by embedding a culture of risk management, responsibility, and mitigation into all levels of the Company.

Recognising that all employees should have access to adequate training and a career path. To help develop the local community and keep its social fabric intact.

1

2

3

4

The Wesizwe way to sustainable development is anchored on four pillars, spearheaded by our Corporate Affairs Executive with Exco support.


WESIZWE IN CONTEXT

As reported in the governance section of this IR, the Board carries an oversight responsibility for the management of risk in the Company, and has delegated this responsibility to the Audit and Risk Committee, Exco and other management committees. Risk governance is one of the Board’s primary aims, resulting in risk being reviewed and monitored monthly, and which includes accounting for the operational environment of the Company.

The management of risk is jointly undertaken with all members of management, within all business operations, and reported to the Audit and Risk Committee and the Board of Directors after consideration by Exco.

The daily management, however, of the risk function is delegated to the Corporate Affairs department, under Mr Hamlet Morule who is an Exco member and who is supported by the Risk and Compliance Officer, Mr Letebele Motswenyane. Together, and with the support of management, Mr Morule and Mr Motswenyane ensure that the risk management process is embedded in the organisation.

The assessment of strategic, operational and project-related risk follows well-defined risk assessment and risk treatment processes. This includes Identification, analysis, evaluation, and monitoring. The Company’s Enterprise Risk Management is aligned to ISO 31000 international risk management standards and follows the framework as indicated in Figure 7.

Scope, Context, Criteria

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and

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Co

mm

unic

atio

n a

nd C

ons

ultin

g Risk Identification

Risk Analysis

Risk Evaluation

Risk Assessment

Risk Treatment

IntegratedContinual

improvement

Structured and

comprehensive

Human and cultural factors

Best available

informationCustomised

InclusiveDynamic

Value Creation

and Protection

Integration

Leadership and

Commitment

Implementatio

nEvaluation

De

sign

Imp

rove

men

t

Figure 7: Principles, framework and process

Risk management


The Covid-19 pandemic is the major contributor towards the current risks carried by the company. Its impact has had an adverse impact on overall operations, supply chain, employee health and morale.

Due to the various challenges associated with the pandemic, the Company could not convene its planned annual strategy and risk reviews session, an exercise deferred to Q1 of 2021. Below are the top risks as identified by management and ratified by the Board:

Table 1: The top risks are:

Risk name Consequence Root cause

Inherent

rating Control name

Control

effectiveness

Residual

rating

1 Inability to attain project construction and development milestone targets (mine and the process plant)

• Increased costs• Loss of investment value• Reduced investor confidence• Reduced Stakeholder

Confidence

• The Covid-19 restrictions and lockdown delays

• Poor contractors and Owners team performance

• Delays in permits application and approval

• Delays in procurement and contracts finalisation

• Poor project management

Very high • Review and optimise all project packages schedules to fast-track

• Implementation of late penalties in contracts

• Create capacity in the procurement office and streamline the inquiry processes

• Build capacity for project management within owner’s team

Adequate High

2 Increase in operational cost and expenditure (Covid-19)

Inability to deliver project within budget

Negative impact on the project value

• Additional cost for safety measures guided by the DMRE MCOP for Covid-19

• Reduction in production capacity due to non-availability of labour impacted by Covid-19

• Interruptions and/or disruptions in services rendered to the mine

Very High • Mitigating measures to curb the spread of the Covid-19 Standard Operating Procedure

• Risk Assessment on mitigating measures to curb the spread of Covid-19

• Mandatory code of practices for the mitigation and management of Covid-19 outbreak

Adequate High

3 Inability to meet mining charter targets & SLP Commitments

Mining License suspension/cancellation

Reputational risk and community disgruntlement

• Insufficient budget provision• Failure to meet Company annual• Inability to access project sites or

restricted construction activities due to Disaster Management Act regulations Budgets adjustments due to unplanned Covid-19 costs

Very High • Application for Section 102 • Revision and amendments to the SLP

project schedules • Ensure compliance to Disaster

management act regulations

Adequate High

4 Delay in delivery of long lead items and critical spares

Project delays

Increased cost

• Delays in Customs• Inclement weather• Covid-19 lockdown delays

Very High • Communication with suppliers • Site visits and regular clarifications• Regular progress updates and expediting

Adequate High

5 Frequent intersection of high concentration of Flammable Gas underground

• Multiple fatalities and damages to infrastructure

• Loss of production days due to frequent stoppages to clear gases

• Mining within and nearer the Pilanesburg geological complex

• High concentration of flammable gas being emitted from the rock mass underground

High • MCOP (mandatory code of practice)• Use of cover drilling and sensors to predict

and manage intersections• Create additional working faces for

redundancy

Adequate High

6 Late permit approvals • Project delays and increased cost

• Loss of opportunity and project value

• New impact assessment requirements.• Delays in interpretation of requirements

and completion of applications.• Lack of cooperation by stakeholders

on EIA processes (community)

High • Visits the DWA and seek a higher level meeting

• Regular communication and reporting to authorities in line with approved license requirements

• Seek support and invest in relations with community, business leaders and the office of the Kgosi

Adequate High


Risk management (continued)


WESIZWE IN CONTEXT

The Covid-19 pandemic is the major contributor towards the current risks carried by the company. Its impact has had an adverse impact on overall operations, supply chain, employee health and morale.

Due to the various challenges associated with the pandemic, the Company could not convene its planned annual strategy and risk reviews session, an exercise deferred to Q1 of 2021. Below are the top risks as identified by management and ratified by the Board:

Table 1: The top risks are:

Risk name Consequence Root cause

Inherent

rating Control name

Control

effectiveness

Residual

rating

1 Inability to attain project construction and development milestone targets (mine and the process plant)

• Increased costs• Loss of investment value• Reduced investor confidence• Reduced Stakeholder

Confidence

• The Covid-19 restrictions and lockdown delays

• Poor contractors and Owners team performance

• Delays in permits application and approval

• Delays in procurement and contracts finalisation

• Poor project management

Very high • Review and optimise all project packages schedules to fast-track

• Implementation of late penalties in contracts

• Create capacity in the procurement office and streamline the inquiry processes

• Build capacity for project management within owner’s team

Adequate High

2 Increase in operational cost and expenditure (Covid-19)

Inability to deliver project within budget

Negative impact on the project value

• Additional cost for safety measures guided by the DMRE MCOP for Covid-19

• Reduction in production capacity due to non-availability of labour impacted by Covid-19

• Interruptions and/or disruptions in services rendered to the mine

Very High • Mitigating measures to curb the spread of the Covid-19 Standard Operating Procedure

• Risk Assessment on mitigating measures to curb the spread of Covid-19

• Mandatory code of practices for the mitigation and management of Covid-19 outbreak

Adequate High

3 Inability to meet mining charter targets & SLP Commitments

Mining License suspension/cancellation

Reputational risk and community disgruntlement

• Insufficient budget provision• Failure to meet Company annual• Inability to access project sites or

restricted construction activities due to Disaster Management Act regulations Budgets adjustments due to unplanned Covid-19 costs

Very High • Application for Section 102 • Revision and amendments to the SLP

project schedules • Ensure compliance to Disaster

management act regulations

Adequate High

4 Delay in delivery of long lead items and critical spares

Project delays

Increased cost

• Delays in Customs• Inclement weather• Covid-19 lockdown delays

Very High • Communication with suppliers • Site visits and regular clarifications• Regular progress updates and expediting

Adequate High

5 Frequent intersection of high concentration of Flammable Gas underground

• Multiple fatalities and damages to infrastructure

• Loss of production days due to frequent stoppages to clear gases

• Mining within and nearer the Pilanesburg geological complex

• High concentration of flammable gas being emitted from the rock mass underground

High • MCOP (mandatory code of practice)• Use of cover drilling and sensors to predict

and manage intersections• Create additional working faces for

redundancy

Adequate High

6 Late permit approvals • Project delays and increased cost

• Loss of opportunity and project value

• New impact assessment requirements.• Delays in interpretation of requirements

and completion of applications.• Lack of cooperation by stakeholders

on EIA processes (community)

High • Visits the DWA and seek a higher level meeting

• Regular communication and reporting to authorities in line with approved license requirements

• Seek support and invest in relations with community, business leaders and the office of the Kgosi

Adequate High


Our Operating environment (continued)

Risk management (continued)

Business Line Management

THIRD LINE OF DEFENCE

Independent assurance

FIRST LINE OF DEFENCE Primary risk and control

responsibility

Promotes strong business cultureOwnership of risk

management processImplement controls

Day-to-day risk management of

risk-takers

Develops centralised policies and

standardsDevelops risk

management process and control

monitors

Provides an independent and objective challenge to the level

of assurance provided by business operations

and oversightValidates risk management

SECOND LINE OF DEFENCE Ongoing monitoring of

risk and controls

BOARD – AUDIT AND RISK COMMITTEE

Risk Management and Compliance

Audit

Compliance managementAdhering to the mining sector’s compliance obligation is imperative for the success of the Company. This includes the applicable requirements as set out in statutory, regulatory, and supervisory environments, as well as any other relevant mining general codes, requirements and best practice guidelines. The Company also takes a broader view and considers all other mining-relevant standards, local and global.

The Company is steadfast in adhering to international best practices and market standards related particularly to accountability, transparency, consistency, principles, and business ethics, more so those that promote and uphold sustainability.

We manage negative mining effects by compliance to good governance practice, including those related to: safety and training thereof; health and environmental procedures, such as medical screening and follow-up services; and strict waste management and scarce resource management procedures. All of these practices are currently working efficiently at the BPM site and within the surrounding community. We also adhere to the principles of good governance in all our operations; transparency is one aspect which we steadfastly endorse.

As mentioned earlier, the Audit and Risk Committee provides oversight over risk and compliance on behalf of the governing body of the Company. This includes overall oversight, reviewing reports obtained for appropriate levels of independent assurance, continuous monitoring, and ensuring management maintains an effective compliance management system that meets all applicable compliance obligations.

Management is responsible to ensure that compliance obligations are met on a day-to-day basis and that the Company’s compliance policy frameworks are effectively implemented, supported and adhered to. The compliance function plays a valuable role in the implementation of a compliance risk management process, which includes assisting in facilitating and advising on the identification, assessment, management, monitoring, and reporting of compliance risk.

A regulatory universe has thus been identified, with acts categorised as high priority, medium priority, and low priority. All high priority acts (as per figure that follows) are monitored for compliance with a compliance risk assessment performed and approved by Exco, and reported to the Board for monitoring.


WESIZWE IN CONTEXT

Category/Priority

HIGH PRIORITY LEGISLATION & REGULATIONS

King IV High Priority

Mining Charter High Priority

Broad-Based Black Economic Empowerment Act 53 of 2003 High Priority

Promotion of Access to Information Act 2, 2000 (PAIA) High Priority

Protection of Personal Information Act 4 of 2013 High Priority

Companies Act 71 2008 High Priority

Johannesburg Stock Exchange Listing Requirements High Priority

International Financial Reporting Standards High Priority

Income Tax Act 58 of 1962 High Priority

Tax Administration Act 28 OF 2011 High Priority

Value-Added Tax Act 89 of 1991 as amended High Priority

Basic Conditions of Employment Act 75 of 1997 High Priority

Labour Relations Act 66 of 1995 High Priority

Skills Development Act 97 of 1998 High Priority

Employment Equity Act 55 of 1998 High Priority

National Environmental Management Act 107 of 1998 High Priority

National Environmental Management: Air Quality Act 39 of 2004 High Priority

National Veld And Forest Fire Act 101 of 1998 High Priority

National Environmental Management: Waste Act High Priority

National Water Act 36 of 1998 High Priority

Compensation for Occupational Injuries and Diseases Act 130 of 1993 High Priority

Mine Health and Safety Act 29 of 1996 High Priority

Occupational Health and Safety Act 85 of 1993 High Priority

Occupational Health and Safety Act 85 of 1993 – Regulations High Priority

Explosives Act 26 Of 1956 High Priority

Mineral And Petroleum Resources Development Act 28 Of 2002 High Priority

Mineral and Petroleum Resources Royalty Act 28 of 2008 High Priority

Constitution of the Republic of South Africa, 1996 High Priority

Table 2: Legislation



Ethics and Business ConductIn its delivery of responsibilities, the Social and Ethics Committee approved an Ethics framework as per the South African Institute of Ethics:

Governance of ethics and ethics management framework

Through Company employee engagement and communication campaigns, employees have been urged to live and endorse the Company’s values. Management also ensured that the Code of Ethics and Business Conduct, which was approved by the Social and Ethics Committee, has been implemented and monitored by management. The Code of Ethics was adopted as a source of direction and guidance for internal actions and decisions, and in all interactions with stakeholders.

The Company Code of Ethics addresses matters relating to conflict of interest; a harassment-free workplace, political contribution, prevention of unauthorised dissemination of Company information, the acceptance of donations and gifts, and the protection of the Company’s intellectual property and patent rights. It also prescribes the disciplinary action, inclusive of dismissal or prosecution, to be administered in the event of any contravention of the Code. The Code of Ethics has been included in the Company induction programme, thus ensuring that all employees, contractors and suppliers adhere to the Code of Ethics.

Management aspires to create an ethical culture by conforming to its corporate values and by leading in a manner that demonstrates an ethical tone at the top. The Company is committed to maintaining a zero tolerance stance on fraud, corruption, misconduct or dishonesty. Employees, business partners, contractors and associates are expected to conduct themselves in accordance with the Company’s Code of Ethics and policies related to fraud, corruption, whistleblowing and governance.

CULTURE

Leadership Commitment

Government Structures

Ethic

s risk a

ssessm

en

t

Independent assessment and external reporting

EthicsManagement

Monitor and

reportInstitutionalisation

Code and

policies

Ethi

cs st

rate

gy

CULTURE

CULTURE

CULTURE

OURLEADERSHIP

Chairperson’s review 28

Chief Executive Officer’s review 30

Our leadership 32

OUR LEADERSHIP



I am pleased to present our Integrated Annual Report for FY2020.

Every year the company has faced a myriad of challenges, but in 2020, the advent of the Covid-19 pandemic globally resulted in the world totally unprepared in its response to the pandemic, and this resulted in the tragic loss of lives and livelihoods and further exacerbated the poor performance of the South African economy.

During this unprecedented period, the global mining sector had to adapt accordingly, and some projects had to be put on hold, resulting in share prices of listed companies spiralling Downward. Commodity prices, particularly platinum and palladium, dropped by more than 40% in just three weeks.

Giving that our mine, Wesizwe Platinum is still under construction, the project that has had to contend with serious delays as a result of the various periods of lockdown and our progress towards production dates was severely compromised.

The Covid-19 pandemic has highlighted to companies across the private and public sectors, a need to invest in adequate health infrastructure to the benefit of their customers and employees, and also their surrounding communities.

SAFETY AS A PRIORITY The health and safety of our people is our highest priority and while I am pleased to report we did not lose one person to the dreadful pandemic, tragically we were all devastated by the loss of Mr Wu Chongfeng, who died in an underground accident in May. We continue to emphasise that there is no room for complacency when it comes to safety, and have deepened our daily communications around safety performance.

SOCIAL VALUEAnother aspect that was highlighted because of Covid-19, was the importance of meeting and exceeding our social compact in respect of our host community. This focus intensified in 2020, as we

2021 is predicted to be the year when platinum outstrips gold in demand, being driven by the high industrial need for platinum basket minerals and new global policies that promote a hydrogen economy for the future.

Chairperson’s overview


OUR LEADERSHIP

continued to prioritise how best to serve the need of all our stakeholders. In the year under review, we worked hard to integrate social impact in all the decisions we made to support the community in the vicinity of the mine.

SUSTAINABILITYSocial engagement is also crucial to ensure that every aspect of our activities promotes and fosters a lifecycle understanding that will be important to our communities own development and wellbeing.

Our strategic environmental assessments are key to this because they probe and expose the effectiveness or otherwise, of the impact that our interventions have on our operations. These also inform our investment and business decision-making, such as how we reduce our carbon footprint, take charge of biodiversity so it is not lost, and ensure sustainability long after our mining activities have ceased. Ensuring that we use resources optimally, particularly during this construction phase, has tightened our resolve to conform to the highest international and local standards. We conserve and recycle wherever possible, be that energy, water or materials and ensure that this information is distributed to our people so that the message can be passed on in perpetuity.

COMPLIANCE AND GOVERNANCEThis is the fourth year that we have presented an integrated report, which is compliant with the King Codes. I believe this establishes Wesizwe as a responsible mining company and can prove its long-term value creation based on principles of fairness, accountability, responsibility and transparency. This IR reflects how we create the value now, internally and externally, which encourages improvement in our relationships with our investors, employees and other stakeholders. It also drives future cash flows and indicates how we allocate capital most effectively. We underpin this by integrating our

thinking with insights for a future that is beneficial for all in our ambit.

RISK AND RISK MANAGEMENTManagement is engaged with performing, to the highest level, operational risk assessments. This team is guided by a management framework to ensure mitigation and indeed, even anticipate potential risks by monitoring trends and patterns in the platinum mining sector.

OUTLOOKGiven the positive repositioning of platinum in global markets going forward, I am convinced that when the BPM beings production, the supply-demand landscape will be ripe to supply our platinum to markets all over the globe.

I wish to thank our shareholders, our investors, our communities, and most importantly our employees.

2020 was a tough year but the resilience, discipline and focused approach shown by all, is valued. Thank you for your continued support of Wesizwe, as we position our collective actions towards the completion of the mine and look forward to the production of our first ore.

Dawn NM MokhoboChairperson

2020 was a tough year but the resilience, discipline and focused approach shown by all, is valued.


Unprecedented economic uncertainty, due to the impacts of Covid-19, was experienced across the globe in 2020. For Wesizwe those impacts affected our mine construction and development largely from the second quarter of the year following the first lockdown and a swath of disaster management regulations, which were issued to ameliorate the risks associated with the spread of the pandemic.

Given that South African mines were only allowed to work at full capacity from June 2020, the Company adopted a risk-based restart approach, and despite the challenges we moved ahead progressively. The main focus was directed at meeting our mine construction targets, accelerating the construction of both the processing plant and housing project. I am pleased to report that we have made appreciable progress in those areas.

HEALTH The Mining industry is undoubtedly one of the most prepared to handle a pandemic impact and response because of the stringent and highly regulated safety and health regime. Many mines

have acquired a positive reputation because of how the industry has responded in the past to HIV/AIDS and tuberculosis, by using practices and novel approaches to contain the spread of those epidemics. This approach equipped the industry well in having the ability and readiness to respond to the Covid-19 virus.

Like all mines, we too made Covid-19 mitigation our top priority. Our efficacy was enhanced because of the early warnings received from our international directors who also shared global best practices on containing the virus.

We ramped up our strategic health and safety measures with the extra precaution of contracting a professional healthcare service, who was responsible for engaging with our employees and keeping the infection rate at the minimum level.

As a result we were fortunate to only have 54 of our 1621 employees test positive for Covid-19, with no related fatality. We are also pleased to announce that we have not recorded any cases of tuberculosis, dermatitis and noise-induced hearing loss during the reporting period.

Mining operations are likely the most prepared of industries to handle a pandemic because the safety and health regime has always been a top priority.

CEO’s overview


OUR LEADERSHIP

Given the financial hardship that manifested through lockdown levels, and the general financial difficulties it imposed on the livelihood of workers and their families, the Company made the decision in the best interests of our employees, to continue to pay full salaries throughout lockdown, and this regardless of the financial constraints the Company faced.

We also donated towards and distributed food parcels to the value of R1.4-million, to the most needy of families within our host community. These measures helped to improve the morale of our employees and the relationship with our host community.

SAFETY At the end of 2020, we recorded a Lost Time Injury Frequency Rate of 0.57 and a Serious Injury Frequency Rate of 0.57 vs a threshold of 0.59 and achieved 0.45. Fatality Free Shifts following the accidental fatality in May 2020, of Mr Wu Chongfeng, who died in a fall-of-ground accident.

We extend our deepest condolences to his family, friends and colleagues. This type of accident is preventable and management has taken appropriate measures to avoid a repeat. Mr Chongfeng’s death highlighted the reason why we prioritise the value of our people and emphasises our agenda for zero harm.

Within the process of mitigating safety risks, we have also introduced our own Mine Rescue Service, comprised of two teams, and headed by our chief engineer. Further we have upgraded the BPM’s diesel generator to 8MW, which will enable a bulk shift of underground evacuation of up to 160 people per trip, as opposed to only 10 with the previous 1.6MW generator.

CAPITAL PERFORMANCERegarding our investment in 2020, we registered an R2.4-billion capital expenditure into the mine construction. We also achieved all the adjusted targets (adjusted due to the impact of Covid-19), which are: 3 791m underground flat development; completed and commissioned some of the underground infrastructure as planned; total 171 796 tonnes hoisted in which 86 446 tonnes are development ore (Merensky and UG2); and started the concentrate processing plant construction and long-lead items; phase 1 housing project 30% completed and we also completed the definitive feasibility study – DFS update on our project.

Our 2020 achievements will contribute towards ensuring that the mine achieves its long-awaited objective of production in late 2021, and we continue, in 2021, to work towards completion of the first phase of the mine and construction of the concentrate processing plant.

HUMAN CAPITALWe will be ramping up our Human Capital by drawing on the talents within our host community and neighbouring areas, as well as from the general market. Simultaneously, management has completed its review of the remuneration policy and all other human resource-related codes and conducts to further guide our stable workforce, and rolling our culture into our future.

OUTLOOK In 2020, we saw a strong performance of the PGM basket price and we hold the view, as always, that the strong cycle of PGM metal prices is gradually picking up. By adhering to the Company’s designed construction and ramp up plan, we will be able to enter the product market at the start of an up-swing cycle. This is according to a number of analysts who predict this up-swing to last for several years.

Our shareholders and funders have shown continuous strong confidence in our project, as was demonstrated when they allowed the Company to defer the mid-year capital and interest payments to year end, and further provided a US$41-million short-term loan to enable us to meet that commitment.

In 2021, we will continue to drive our stringent implementation approach to ensure we launch the production phase planned for late in the year.

APPRECIATION The Company’s ability to progress, and our achievements in meeting targets, is undoubtedly a result of all our stakeholder’s efforts and determination to ensure success. I extend my gratitude to all our hard-working employees, our shareholders, Directors, Exco and Management, and community leaders, for their continuous support and ongoing commitment. I wish everyone good health and safety in this particularly challenging period.

Zhimin LiChief Executive Officer (CEO)


Mr Pengfei Li

Independent Non-executive Director and ChairpersonBachelor of Arts, University of the North. Strategic Transformation Programme, University of Stellenbosch Business School

Appointed: 17 December 2009Leadership roles: First African woman on the management board of Eskom, as Executive Director in charge of growth and development.Won the prestigious Business Woman of the Year Award in 1993. Independent Electoral Commissioner in 1994.Served on the Promotions Committee for the South African Police Service in 1996.Nominated as the Chair of the United Nations Special Committee of Experts appointed to address the global issue of women and senior economic decision making in 1996.Boards: Wesizwe Platinum Limited, Ford South Africa and Sabvest (Pty) Ltd.Skills, expertise and experience: Social and economic development, governance and strategy.

Non-executive Director and Deputy Chairperson of the BoardMasters of Mining Engineering and a Bachelor’s Degree from Kunming University of Science and Technology

Appointed: 1 April 2019Skills, expertise and experience: Several years’ experience in the mining field working for Jinchuan Nonferrous Metals Company and Jinchuan Group Corporation Limited. Mr Guo has won the title of “Excellent Technology Management Worker of China Nonferrous Metals Industry” issued by China Nonferrous Metals Industry Association. He has also received 14 honours issued by the State and Jinchuan Group including the second prize of National Science and Technology Progress Awards and the first prize of science and technology award of China Nonferrous Metals Industry. He is associated to production and operations within the mine.

Chief Executive OfficerBachelor Degree in Mining Appointed: 15 February 2017Skills, expertise and experience: Bachelor Degree in Mining Engineering from KunMing University of Science and Technology in China. 30 years experience in mining and civil engineering construction obtained through working in China for the Jinchuan Group and in Africa, including other foreign jurisdictions where he managed multi-million dollar projects.

Non-executive Director and Chair of Remuneration CommitteePhD Industry Economics China Renmin University, School of ManagementAppointed: 20 September 2016Leadership roles: Executive Director of Investment in China Africa Development Fund (CADFund)Skills, expertise and experience: Project valuation, investment instruments, business negotiation and project implementation.

Our leadershipBoard of Directors

Ms Dawn Mokhobo

Mr Huigao Guo

Mr Zhimin Li


OUR LEADERSHIP

Mr Victor T. Mabuza

Mr Jianguo Henry Liu

Non-executive DirectorMaster of Management, Wuhan University, Bachelor of Engineering, Kunming University of Science and TechnologyAppointed: 1 February 2018Skills, expertise and experience: Extensive experience in project financing, overseas investments, and mergers and acquisitions in the mineral resources sector within the Jinchuan group.

Independent Non-executive Director, Chair of the Social and Ethics CommitteeBAdmin (Hons) (UWC), PDM (UCT GSB) and Certificate in Defence Management (Wits)Appointed: 30 May 2011Skills, expertise and experience: Politics, security sector reforms and health.

Financial DirectorInternational MBA in Finance and Marketing Management from School of Economics, Management of Tsinghua University and MIT Sloan School of Management, Bachelor Degree in Inner Combustion Engine from Xi’an Jiaotong University in ChinaAppointed: 01 April 2020Other directorships and leadership roles: Specialised in international finance, investment analysis, budget planning and management, and has more than 27 years working experience in Power Generation, Petrochemical Development Finance, and Project Finance. He has previously worked for Sinopec as a Senior Project Manager, GE Energy as Business Development Director and China-Africa Development Fund as Managing Director of Livelihood Investment, Market Development and Investment Consulting Department. Mr Liu is an excursionist, having been to 39 African countries, applying superior analytical aptitude for cost-saving and management control of companies.

Mr Sun Pingan

Mr Lincoln V. Ngculu

Independent Non-executive Director, Chair of Audit and Risk CommitteeBachelor of CommerceAppointed: 22 August 2014Leadership roles: Metorex/Jinchuan GroupSkills, expertise and experience: Corporate finance, investment banking, public offers, BEE strategies, corporate governance, risk management and strategic management.

OUR LEADERSHIP

INTEGRATED ANNUAL REPORT 2020


Our leadership (continued)

Executive team

Company SecretaryAdvocate of the High Court of South Africa Diploma in legislative drafting BJuris, LLBAppointed: 2 January 2013Other directorships and leadership roles: Non-executive Director of South African Chapter of the International Association of Women Judges and Director of Azeyech Consulting (Pty) Ltd.

Ms Vasta Mhlongo

Corporate Affairs ExecutiveBJuris, Magister Legum (LLM), MSc: Project Planning & Development, Harvard Senior Executive ProgramAppointed: 4 January 2012Other directorships and leadership roles: Member of the Social and Ethics Committee of the Wesizwe Board of Directors. Member of the Purchasing and Contracts Committee of the Board of Directors of United Manganese of Kalahari. Director of HamletM Consulting (Pty) Ltd.

Mr Hamlet Morule

Human Resources ExecutiveBA (Hons), Social Work, BA (Hons), Human Resources Development, Advanced Diploma in Project and Programme Management, Programme in Advanced Labour Relations Management

Appointed: 1 May 2013

Other directorships and leadership roles: None

Ms Basetsana Ramaboa

Executive General ManagerMBA, MEng (In Project Management), BSc Mining EngineeringAppointed: 1 May 2011

Other directorships and leadership roles: Director at Mozan Holdings (Pty) Ltd and GSR ( Pty) Ltd

Mr Jacob Mothomogolo

Chief Executive OfficerBachelor Degree in Mining Engineering from KunMing University of Science and Technology in China.Appointed: 15 February 2017Other directorships and leadership roles: 30 years experience in mining and civil engineering construction obtained through working in China for the Jinchuan Group and in Africa, including other foreign jurisdictions where he managed multi-million dollar projects.

Mr Zhimin Li

Financial DirectorInternational MBA in Finance and Marketing Management from School of Economics, Management of Tsinghua University and MIT Sloan School of Management, Bachelor Degree in Inner Combustion Engine from Xi’an Jiaotong University in ChinaAppointed: 1 April 2020Other directorships and leadership roles: Specialised in international finance, investment analysis, budget planning and management, and has more than 27 years working experience in Power Generation, Petrochemical Development Finance, and Project Finance. He has previously worked for Sinopec as a Senior Project Manager, GE Energy as Business Development Director and China-Africa Development Fund as Managing Director of Livelihood Investment, Market Development and Investment Consulting Department. Mr Liu is an excursionist, having been to 39 African countries, applying superior analytical aptitude for cost-saving and management control of companies.

Mr Jianguo Henry Liu

Integrated Annual Report 2020

Documents

Transcript of Integrated Annual Report 2020